Enjoy MTF at 0% Interest
For first 30 days
Choose from 1,500+ Stocks with up to 4X Leverage!
What is MTF?
Margin Trading Facility (MTF) allows you to buy stocks by paying only a part of the total amount upfront, while the rest is funded by 5paisa. It’s a smart way to leverage your capital and take delivery of stocks without paying the full amount on day one.
Key Benefits of using MTF
Up to 4X buying Power
Boost your purchasing capacity by up to 4X using collateral. Trade bigger without needing full cash upfront.
Cashless Trading
Pledge approved stocks as margin instead of cash. Buy shares without selling your current holdings.
Flexible Order Placement
Choose ‘Delivery’ or ‘MTF’ while placing orders. Switch seamlessly based on your funding preference.
Unlimited Holding Period
No forced square-offs. Hold positions indefinitely and convert to delivery when you’re ready.
Scrip Eligibility Transparency
See upfront which stocks qualify for MTF or T+5 funding. Over 1500 stocks are eligible for MTF, while all stocks qualify for T+5.
Convert MTF holding to Delivery
You can easily convert your MTF holdings to Delivery anytime, as long as you have sufficient funds.
How does MTF Work?
Let’s look at how MTF works with a real-world example:
₹25,000
You Fund
₹75,000
Funds
₹1,00,000
Value of stocks you can purchase
MTF Interest Rates
0 to 1 Cr
0.041%
14.99%
>1 Cr to 25 Cr
0.038%
13.99%
Buy More, Pay Less with
MTF on 5paisa
- Total Investment
- Margin Requirement
- Margin Required
- Funding Amount
- Stock Price Increase (30 days holding)*
- Profit
- ROI before Interest
- Interest
- ROI After Interest
Non - MTF
- ₹1,00,000
- Full Investment Required
- ₹1,00,000
- -
- 20%
- ₹20,000
- 20%
- -
- 20%
MTF
- ₹1,00,000
- 25% (Considering Scrip has 4X leverage)
- ₹25,000
- ₹75,000
- 20%
- ₹20,000
- 80%
- ₹75,000 * 0.041% * 30 days = ₹922.5
- 76.94%
How To
- 01. Go to any stock order form Search for any stock with leverage, from a wide range of 1500+ stocks and open its order form.
- 02. Go to MTF tab On the right-most side choose the MTF tab in the order form.
- 03. Click activate Check the box to accept T&Cs, and click on "Activate MTF", and you are all set.
FAQs
To activate 5paisa’s Margin Trading Facility, you need to have an active demat and trading account with 5paisa. You can activate MTF instantly via the Order Form → MTF section by accepting the terms.
Delivery orders require full cash upfront, while MTF orders let you use collateral margin based on stock-specific leverage to enhance your buying power.
MTF offers greater control and flexibility in trading, enhanced leverage through pledged collateral, a clear breakdown of cash vs. leveraged positions, and seamless management and tracking of MTF holdings.
With MTF orders, you can boost your buying power by using collateral margin—approved stocks pledged as security—instead of relying solely on cash.
Interest on MTF positions is charged at a competitive rate and starts from the day funds are utilized. 5paisa's MTF interest rate is currently at 0.038% per day (~13.99% per annum) on the borrowed amount, billed on a weekly basis.
You can hold MTF-funded stocks indefinitely, provided you maintain the required margin and pay interest charges on time. If the margin requirement is not met, a margin call may be issued, and non-compliance may lead to square-off of positions.
Yes, 5paisa provides the MTF on both NSE and BSE, enabling clients to take leveraged delivery positions on either exchange.